Investor buys second Gowanus development site in advance of rezoning

The Domain Cos. is making a second large investment in Gowanus on the cusp of a rezoning that could allow residential and mixed-use development on sites that have long been restricted for manufacturing and commercial uses.

The company announced it has acquired 420 Carroll St., a roughly 65,000-square-foot industrial building along the Gowanus Canal that is currently occupied by a plumbing and sewer company. Domain said it paid $47.5 million for the property, which can accommodate about 130,000 square feet of commercial development.

The site is just across the canal from two recently-built residential buildings and it is widely expected that the city will begin a rezoning of Gowanus this year that will allow similar projects to break ground, including on the sites Domain recently purchased.

In addition to 420 Carroll St., the firm bought another warehouse property nearby at 545 Sackett St. in December for $26.5 million. In a conversation with Crain's at the time of that deal, Matthew Schwartz, a principal and co-founder of Domain, said he believed the rezoning will allow for residential development at a larger scale than current regulations allow.

A statement from the company pointed out that 420 Carroll St. was in an area of the neighborhood that was included in a study spearheaded by local City Councilman Brad Lander that sought to outline the community's vision for the rezoning. That study appeared to accept development of a portion of the neighborhood in exchange for community benefits such as affordable housing and space for businesses that can provide jobs.

It is expected that the city will include suggestions from Lander's plan in outlining the rezoning, which will require Lander's approval to pass.

"Gowanus is a dynamic neighborhood, and we are excited to contribute to its growth," Schwartz said in a statement. "We're looking forward to creating another unique, mixed-use project that will honor the deep-rooted sense of community in the area."

Property Markets Group, a firm that owns several development sites in the neighborhood, was the seller of 420 Carroll St.

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